In the event of a conflict between the Fat Shack Development Agreement and a franchise agreement, which agreement's terms control?

According to Fat Shack's 2025 Franchise Disclosure Document, the terms of the Development Agreement will control if there is any conflict between it and the franchise agreement. This is explicitly stated in section 8.10 of the Development Agreement.

This means that if a franchisee signs a Development Agreement to open multiple Fat Shack locations, and later signs individual Franchise Agreements for each location, the Development Agreement takes precedence. For example, if the Development Agreement specifies a certain territory size or development schedule, and a subsequent Franchise Agreement contains conflicting terms, the terms outlined in the Development Agreement will be enforced.

This clause is important for prospective Fat Shack franchisees to understand, especially those planning to develop multiple locations. It ensures that the initial terms agreed upon in the Development Agreement remain the governing terms throughout the development process, providing clarity and consistency in the relationship between Fat Shack and the franchisee.